The Warehouse Group will cut 270 jobs across its head office team as it pursues a leaner operating structure.
In an NZX filing, Warehouse Group said the changes are part of a program that began in November 2025. The company wants the cost of operating the business to fall beneath 31 per cent of sales.
In partnership with Tata Consultancy Services (TCS), the group is looking to modernise at scale to improve its operations. It added that this would allow remaining head office workers to focus on “critical areas”.
“Our cost base is not sustainable for a value retailer,” CEO Mark Stirton said.
“As one of New Zealand’s largest retail employers, we must make these tough choices for our 10,000 team members and their families across the country and return the group to sustainable profitability.”
Stirton added that the group will support employees through this “difficult time”.
“Together with the non-labour cost reduction initiatives underway across the group, these changes will help strengthen profitability and allow us to deliver better value for our customers over the long term,” he said.
The restructure will result in redundancy costs of approximately $6 million in the 2026 financial year. The group expects to produce cost savings of $3 to $4 million in the same period, increasing year-on-year.
“This will deliver total expected savings of approximately $70 million over the initial 5-year contract term,” the statement added.
The Warehouse Group will release its half-year financial results on March 27.
